Finance Act, 1994

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Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.

37.—(1) Chapter VII (as amended by section 32 of the Finance Act, 1993 ) of Part I of the Finance Act, 1991 , is hereby amended—

(a) in section 55—

(i) in subsection (1) (b), by the substitution of the following subparagraphs for subparagraphs (i), (ii) and (iii):

“(i) section 42 of the Finance Act, 1986 , other than—

(I) paragraph (a) of the definition of ‘qualifying premises’, and the definition of ‘the relevant local authority’ (inserted by section 35 (1) (a) (i) (II) of the Finance Act, 1994), in subsection (1) of the said section 42,

(II) the additional proviso (inserted by section 29 (b) (ii) of the Finance Act, 1992 ) to subsection (4) of the said section 42, and

(III) subsections (8) (inserted by section 35 (1) (a) (ii) of the Finance Act, 1994) and (9) (as so inserted) of the said section 42,

shall have effect as respects capital expenditure incurred on the construction of any such building and on the basis that subsection (4) (apart from the additional proviso thereto) of that section has effect as respects any qualifying building to which that section applies other than a multistorey car-park;

(ii) section 44 of the Finance Act, 1986 , other than—

(I) the definition of ‘the relevant local authority’ (inserted by section 35 (1) (c) (i) (II) of the Finance Act, 1994) in paragraph (a) of subsection (1) of the said section 44,

(II) the proviso (inserted by section 35 (1) (c) (ii) (III) of the Finance Act, 1994) to paragraph (b) of subsection (1) of the said section 44,

(III) the proviso (inserted by section 35 (1) (c) (iii) of the Finance Act, 1994) to paragraph (c) of subsection (1) of the said section 44,

(IV) paragraphs (f) (inserted by section 35 (1) (c) (iv) of the Finance Act, 1994) and (g) (as so inserted) of subsection (1) of the said section 44, and

(V) the proviso (inserted by section 35 (1) (c) (v) of the Finance Act, 1994) to subsection (2) of the said section 44,

shall have effect as respects any qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the construction but not on the refurbishment of any such building;

(iii) section 45 of the Finance Act, 1986 , other than—

(I) the definitions of ‘market value’ (inserted by section 30 (1) (c) (i) (I) of the Finance Act, 1993 ) and ‘refurbishment’ (inserted by section 30 (1) (c) (i) (IV) of the Finance Act, 1993 ), and the proviso (inserted by section 30 (1) (c) (i) (III) of the Finance Act, 1993 ) to the definition of ‘qualifying premises’, in paragraph (a) of subsection (1) of the said section 45, and

(II) the additional proviso (inserted by section 35 (1) (d) (iii) of the Finance Act, 1994) to subsection (2) of the said section 45,

shall have effect as respects rent payable in respect of any such building.”,

and

(ii) in subsection (2) (b), by the substitution of the following subparagraphs for subparagraphs (i), (ii) and (iii):

“(i) section 42 of the Finance Act, 1986 , other than—

(I) paragraph (a) of the definition of ‘qualifying premises’, and the definition of ‘the relevant local authority’ (inserted by section 35 (1) (a) (i) (II) of the Finance Act, 1994), in subsection (1) of the said section 42, and

(II) subsections (4), (8) (inserted by section 35 (1) (a) (ii) of the Finance Act, 1994) and (9) (as so inserted) of the said section 42,

shall have effect as respects capital expenditure incurred on the refurbishment of any such building;

(ii) section 44 of the Finance Act, 1986 , shall have effect as respects qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the refurbishment of any such building—

(I) as if the definition of ‘the relevant local authority’ (inserted by section 35 (1) (c) (i) (II) of the Finance Act, 1994) in paragraph (a) of subsection (1) of the said section 44 were deleted,

(II) as if the definition of ‘refurbishment’ in this subsection were substituted for the definition of ‘refurbishment’ in paragraph (a) of subsection (1) of the said section 44,

(III) as if, in the proviso (inserted by section 35 (1) (c) (ii) (III) of the Finance Act, 1994) to paragraph (b) of subsection (1) of the said section 44, the words ‘the site of which is wholly within the Custom House Docks Area’ were deleted,

(IV) as if the proviso (inserted by section 35 (1) (c) (iii) of the Finance Act, 1994) to paragraph (c) of subsection (1) of the said section 44 were deleted,

(V) as if paragraphs (f) (inserted by section 35 (1) (c) (iv) of the Finance Act, 1994) and (g) (as so inserted) of subsection (1) of the said section 44 were deleted, and

(VI) as if, in subsection (2) of the said section 44—

(A) the reference to ‘5 per cent.’ were a reference to ‘10 per cent.’, and

(B) the proviso (inserted by section 35 (1) (c) (v) of the Finance Act, 1994) to that subsection were deleted;

(iii) section 45 of the Finance Act, 1986 , shall have effect as respects rent payable in respect of any such building—

(I) as if the definition of ‘refurbishment’ in this subsection were substituted for the definition of ‘refurbishment’ (inserted by section 30 (1) (c) (i) (IV) of the Finance Act, 1993 ) in paragraph (a) of subsection (1) of the said section 45, and

(II) as if the additional proviso (inserted by section 35 (1) (d) (iii) of the Finance Act, 1994) to subsection (2) of the said section 45 were deleted:”,

(b) in section 56—

(i) by the substitution of the following definition for the definition (including the proviso thereto) of “qualifying period” in paragraph (a) (ii) of subsection (1):

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of July, 1994,”,

(ii) by the substitution of the following paragraph for paragraph (b) of subsection (1):

“(b) as if in the definition of ‘qualifying premises’ in the said subsection (1) (a) of the said section 23 ‘90 square metres’ were substituted for ‘75 square metres’:

Provided that, as respects expenditure to which the provisions of the said section 23 are applied by virtue of the provisions of section 24 of the Finance Act, 1981 , and which is incurred in an area to which subparagraph (i) or (iii) of paragraph (a) of this subsection relates, the aforesaid reference to 90 square metres shall be construed as a reference to 125 square metres,”,

(iii) by the insertion of the following paragraph after paragraph (b) of subsection (1):

“(bb) where relevant expenditure is incurred in any area to which subparagraph (ii) of paragraph (a) of this subsection relates—

(i) as if in subsection (1) (a) of the said section 23 the following definition were inserted before the definition of ‘relevant period’:

‘“the relevant local authority”, in relation to the construction of a qualifying premises, means the council of a county or the corporation of a county or other borough or, where appropriate, the urban district council, in whose functional area the qualifying premises is situated.’,

(ii) as if in subsection (1) (b) of the said section 23 the following proviso were inserted after subparagraph (i):

‘Provided that where, in relation to the construction of a qualifying premises, the relevant local authority gives a certificate in writing, on or before the 23rd day of February, 1994, to the person constructing the qualifying premises stating that it is satisfied that not less than 15 per cent. of the total cost of construction of the qualifying premises had been incurred prior to the 26th day of January, 1994, any expenditure incurred in respect of work on the construction of the qualifying premises which is carried out in the period from the 1st day of August, 1994, to the 31st day of December, 1994 (hereafter in this subsection referred to as “the balance of expenditure”) shall be treated as having been incurred in the qualifying period.’,

and

(iii) as if in subsection (1) (b) of the said section 23 the following subparagraphs were inserted after subparagraph (iii):

‘(iv) In considering whether to give such a certificate as is referred to in the proviso to subparagraph (i), the relevant local authority shall have regard only to the guidelines in relation to the giving of such certificates entitled “Extension of time limit for completion of developments” which were issued by the Department of the Environment on the 27th day of January, 1994.

(v) Where, by reason of the proviso to subparagraph (i), a deduction is given under this section in respect of the balance of expenditure, no deduction shall be given in respect of that expenditure under section 43 , 44 or 45 of the Finance Act, 1994.’,”,

and

(iv) by the substitution of the following subsection for subsection (2) (apart from the proviso thereto):

“(2) In this section ‘relevant expenditure’ means expenditure on the construction of a qualifying premises (being a qualifying premises within the meaning of subsection (1) (a) of section 23 of the Finance Act, 1981 , subject to the provisions of subsection (1) (b) of this section) incurred in the qualifying period (being the qualifying period within the meaning of subsection (1) (a) of the said section 23, subject to the provisions of subsections (1) (a) and (bb) of this section):”,

(c) in section 57—

(i) by the substitution of the following paragraph for paragraph (c) of subsection (2):

“(c) as if the reference in subsection (2) of section 29 of the Finance Act, 1983 , to ‘90 square metres’ were a reference to ‘125 square metres’ and as if the proviso to that subsection, and subsections (3) and (4) of the said section 29, were deleted.”,

(ii) by the insertion of the following paragraph after paragraph (a) of subsection (3):

“(aa) in the case of relevant expenditure within the meaning of subparagraph (i) of the said subsection (1) (b), as if the reference in subsection (2) of section 29 of the Finance Act, 1983 , to ‘90 square metres’ were a reference to ‘125 square metres’,”,

and

(iii) by the substitution of the following paragraphs for paragraph (b) of subsection (3):

“(b) in the case of relevant expenditure within the meaning of subparagraph (ii) of the said subsection (1) (b), as if for the definition of ‘the principal section’ in subsection (1) (a) of the said section 21 there were substituted the following definition:

‘ “the principal section” means section 23 of the Finance Act, 1981 , as it applies in the manner provided for by paragraph (bb) (inserted by section 37 (1) (b) (iii) of the Finance Act, 1994) of subsection (1) of section 56 of the Finance Act, 1991 ;’,

(bb) as if the proviso to subsection (2) of section 29 of the Finance Act, 1983 , were deleted, and”,

and

(d) in section 58—

(i) by the substitution of the following paragraph for paragraph (d) of subsection (2):

“(d) as if the reference in section 29 (2) of the Finance Act, 1983 , to ‘90 square metres’ were a reference to ‘125 square metres’ and as if the proviso to that section, and section 30 of the Finance Act, 1983 , were deleted, and”,

(ii) by the substitution of the following subparagraph for subparagraph (iii) of subsection (3) (a):

“(iii) as if the reference in section 29 (2) of the Finance Act, 1983 , to ‘90 square metres’ were a reference to ‘125 square metres’ and as if the proviso to that section, and section 30 of the Finance Act, 1983 , were deleted;”,

and

(iii) by the substitution of the following subparagraph for subparagraph (ii) of subsection (3) (b):

“(ii) as if the following subsection were substituted for subsection (4) of the said section 22:

‘(4) For the purposes of the application, by virtue of this section, of relief under section 23 of the Finance Act, 1981 , to any expenditure, that section shall have effect in the manner provided for by paragraph (bb) (inserted by section 37 (1) (b) (iii) of the Finance Act, 1994) of subsection (1) of section 56 of the Finance Act, 1991 , and as if the following definition were substituted for the definition of “qualifying period”:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of July, 1994;” ’ ”.

(2) (a) Paragraph (a), subparagraphs (i), (iii) and (iv) of paragraph (b), and paragraphs (c) (iii) and (d) (iii), of subsection (1) shall be deemed to have come into operation as on and from the 26th day of January, 1994.

(b) Paragraph (b) (ii), subparagraphs (i) and (ii) of paragraph (c), and subparagraphs (i) and (ii) of paragraph (d), of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 26th day of January, 1994.